Virgin Australia to lease more 737s

[ben95]

Hilarious, Qantas and Virgin both say there's no room for a competitor but both expanding their fleets and blaming high fares on lack of capacity

For sure there’s room to grow in the domestic market and that’s enabled the fleet growth of both players, but that room doesn’t make it easy for a new entrant to establish into the jet markets. It’s easy for the incumbent to incrementally grow its fleet year by year to support growing demand, but very difficult for the likes of Rex to start from nothing and try to quickly get to that point where you have scale and can start trimming the cost. As with what happened to Rex the incumbents were aggressive in matching or beating Rex’s fare. But Rex can’t do the reverse because it doesn’t have the same scale to enable them to make a profit at those price points which Jetstar could.

 

[Saab34]

You need $300-$400m in the bank to launch operations here. That’s before one even makes a buck. A million other ways exist to invest and make money. Airlines are not one of them.

 

[jrfsp]

Qatar Airways is mulling changing 737-10 MAX order to 737-8 MAX (instead of dropping the order entirely) and passing the 737-8s on lease to their equity partners such as RwandAir and Virgin Australia

Qatar Air Seeks to Drop Boeing 737s After Making Up With Airbus

Qatar Airways is looking to strike the Boeing Co. 737-10 model from its order book because the aircraft no longer meets its fleet requirements, according to people familiar with the discussions.

www.bnnbloomberg.ca

They have realized that actually those A321s are better after all…

 

[Human]

pieces of junk

Fokkers are noisier (particularly if you sit up the back near the engines) but they have greater seat pitch and you're far less likely to find yourself in a middle seat. I perfectly understand if your preference is for a 737 (mine is too) but I'm wondering why you're describing them as "junk"? Is there something I'm missing?